Teulings, Coen N. - In: CESifo economic studies : CESifo, a joint initiative of … 62 (2016) 2, pp. 197-209
Bubbles are usually viewed as a threat to financial stability. This paper takes a more nuanced view. The world economy … rate of the economy g. As is well-known, rational bubbles are sustainable when r ≤ g in a steady-state equilibrium. Bubbles … can then implement a dynamically efficient equilibrium. We show that from a structural point of view, bubbles, Pay …
